Unlike Australia, New Zealand’s housing affordability continues to improve. And the charts below by Justin Fabo from Antipodean Macro tell the tale.
New Zealand dwelling values fell slightly again in July, down 0.4% year-on-year.
Values have now fallen for around 4.5 years after peaking in late 2021.
In real inflation-adjusted terms, New Zealand dwelling values are now tracking at late 2017 levels, more than 30% below their peak:
New Zealand rents also fell by 0.1% in July and have been in the “no growth” zone for months:
The decline in New Zealand rents has been greatly assisted by the sharp fall in net overseas migration, which clocked in at just under 18,000 in the 2025-26 financial year, down from the 46,000 longer-term annual average:
The situation in New Zealand is a far cry from Australia, where dwelling values remain historically high, despite falling recently:
Australian advertised rents also continue to grow at a significantly faster rate than wages, driven in part by Australia’s still-strong immigration:
